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The family loan agreement is a document that is made between relation by blood or marriage with one (1) acting as borrower and the other a lender. The family member that is asking for the money may be required to pay an interest rate, defined as a percent compounded annually, by the lending party.

The payment plan you choose to use in your Loan Agreement depends on how the borrower will make payments. There are typically four options: Lump sum payment at the end of the term: the borrower pays the entire amount back in one lump sum on a specified date or upon demand. Regular payments: the lender specifies the amount and interval they wish to receive payments from the borrower.